nuh media thread, page-2301

The company has forecast cash outflows of $5.8m for the September quarter, including $2.4m on product manufacturing and operating costs (COGS). Last quarter they produced 17k units and the COGS was $1.7m. For simplicity's sake, assume they plan to manufacture 24k units this quarter.

Next you need an estimate of the average revenue per unit, considering some are sold at full price on Nuheara's own webstore, some with a single-digit margin for Amazon, some in physical stores with perhaps a 30+% margin for Best Buy and the like. I've worked it out before that they should be getting around A$300 per unit, although the AUD is stronger now, so it could be more like $280.

Break even then would be $5.8m divided by $280-$300, or roughly 19-21k invoiced sales for the quarter. It's a theoretical figure. If the actual revenue per unit is higher, they could sell less units to reach break even - if the revenue is lower, they would need to sell more.

Another way of looking at that example is they would need to sell ~80-85% of what is being produced, at this stage.